The retail landscape in the United States is undergoing a dramatic transformation. In 2025 alone, over 15,000 brick-and-mortar stores are expected to close nationwide—a figure that doubles the total from 2024. Major retail chains including JoAnn Fabrics, Walgreens, Macy’s, and Party City are scaling back or shutting down entirely in response to shifting consumer behavior and unrelenting pressure from e-commerce.
Why are so many stores closing?
A perfect storm of factors is accelerating the decline of physical retail:
- E-commerce dominance: Online giants like Amazon, Temu, and Shein continue to capture market share with competitive pricing and rapid delivery.
- High operational costs: Rent, labor, and logistics costs make physical locations less profitable.
- Post-pandemic shopping habits: More consumers now prefer shopping online for convenience and selection.
- Economic caution: Inflation, interest rates, and recession fears are driving Americans to spend less and save more.
Chains closing the most stores in 2025
Below is a list of major retail brands with confirmed closures this year:
- JoAnn Fabrics: All 800 stores and its online site will shut down by the end of May.
- Walgreens: Closing 500 stores in 2025, with a plan to eliminate 1,200 locations by 2027.
- Macy’s: Set to close 66 stores this year as part of a long-term plan to shutter 150 stores by 2026.
- Family Dollar: Will close 370 stores, following 600 closures in 2024.
- Dollar Tree: Shutting down 30 stores after previous cuts.
- JCPenney: Closing 7 more locations in May 2025, adding to the 200+ closures since 2020.
- Party City: All locations are closing due to bankruptcy proceedings.
- Big Lots: Plans to close around 500 stores as part of its restructuring.
- Kohl’s: Will close 27 stores, but will continue operating over 1,100 locations.
Outdoor retailer Next Adventure says goodbye
In a more local but symbolic development, Next Adventure, a beloved Portland-based outdoor gear chain, announced its closure after 28 years in business. The retailer will shut down its online store on May 19, followed by a total liquidation sale starting May 28 at its four remaining locations. Founders Deek Heykamp and Bryan Knudsen cited retirement and market changes as key reasons behind the decision.
Cultural shift behind the retail reset
Beyond the financial drivers, store closures in 2025 signal a larger cultural and behavioral shift. Traditional shopping experiences are being replaced by digital-first convenience, and younger generations are less attached to mall culture.
As more companies shift resources toward online platforms, physical storefronts are becoming liabilities. However, the mass closure of retail locations carries consequences:
- Job losses in retail and service sectors
- Vacant commercial real estate
- Reduced foot traffic in shopping districts
What happens next?
Retailers that survive this wave of closures will likely be those that successfully integrate digital platforms, optimize in-person experiences, and trim underperforming locations.
Consumers, meanwhile, should expect continued promotions, liquidation sales, and changes in where and how they shop. For some shoppers, the closures represent nostalgia lost. For others, it’s a long-overdue shift toward efficiency and price competition.
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